High-deductible health plan
A high-deductible health plan (HDHP) is a health insurance plan with lower premiums and higher deductibles than a traditional health plan. Being covered by an HDHP is also a requirement for having a health savings account.[1] Some HDHP plans also offer additional "wellness" benefits, provided before a deductible is paid. High-deductible health plans are a form of catastrophic coverage, intended to cover for catastrophic illnesses.[2]
In the United States
In the United States, participation in a qualifying HDHP is a requirement for health savings accounts and other tax-advantaged programs. As of 2012, HDHPs are plans with a minimum deductible of $1,200 per year for self-only coverage and $2,400 for self-and-family coverage. The maximum amount out-of-pocket limit for HDHPs is $6,050 for self-only coverage and $12,000 for self-and-family coverage. (However, according to the instructions for IRS form 8889, "this limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit is reached.") The Internal Revenue Service released the 2010 amounts on May 15, 2009,[3] which will be modified each year to reflect the change in cost of living.
| Year | Minimum deductible (single) | Minimum deductible (family) | Maximum out-of-pocket (single) | Maximum out-of-pocket (family) |
|---|---|---|---|---|
| 2009 | $1,150 | $2,300 | $5,800 | $11,600 |
| 2010 | $1,200 | $2,400 | $5,950 | $11,900 |
| 2011 | $1,200 | $2,400 | $5,950 | $11,900 |
| 2012 | $1,200 | $2,400 | $6,050 | $12,100 |
| 2013 | $1,250 | $2,500 | $6,250 | $12,500 |
| 2014 | $1,250 | $2,500 | $6,350 | $12,700 |
References
- ↑ "High-Deductible Health Plans". Health 401k. Retrieved 25 May 2011.
- ↑ "Publication 969". Internal Revenue Service. 11 January 2012. Retrieved 9 June 2012.
- ↑ Revenue Procedure (Rev. Proc.) 2009-29